PaintCo Inc., a domestic corporation, owns 100% of BrushCo Ltd., an Irish corporation. Assume that the U.S. corporate tax rate is 35% and the Irish rate is 15%. PaintCo is permanently reinvesting BrushCo's earnings outside the United States under ASC 740-30 (APB 23). There is no valuation allowance, and the effective tax rates do not change. PaintCo's book income, permanent and temporary book-tax differences, and current tax expense are reported as follows.

Provide the GAAP income tax footnote rate reconciliation for PaintCo, using both dollar amounts and percentages.

Question

PaintCo Inc., a domestic corporation, owns 100% of BrushCo Ltd., an Irish corporation. Assume that the U.S. corporate tax rate is 35% and the Irish rate is 15%. PaintCo is permanently reinvesting BrushCo's earnings outside the United States under ASC 740-30 (APB 23). There is no valuation allowance, and the effective tax rates do not change. PaintCo's book income, permanent and temporary book-tax differences, and current tax expense are reported as follows.
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Provide the GAAP income tax footnote rate reconciliation for PaintCo, using both dollar amounts and percentages.

Quizplus · Accepted Answer

The Answer of PaintCo Inc., a domestic corporation, owns 100% of BrushCo Ltd., an Irish corporation. Assume that the U.S. corporate tax rate is 35% and the Irish rate is 15%. PaintCo is permanently reinvesting BrushCo's earnings outside the United States under ASC 740-30 (APB 23). There is no valuation allowance, and the effective tax rates do not change. PaintCo's book income, permanent and temporary book-tax differences, and current tax expense are reported as follows.
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Provide the GAAP income tax footnote rate reconciliation for PaintCo, using both dollar amounts and percentages.